BUDZ's Cash Dries Up Amid Soaring Losses, Zero Revenue

Ticker: BUDZ · Form: 10-Q/A · Filed: Dec 29, 2025 · CIK: 1393772

Sentiment: bearish

Topics: Cannabis Industry, Penny Stock, Liquidity Crisis, Pre-Revenue Company, High Risk Investment, Operating Losses, Shareholder Deficit

Related Tickers: BUDZ

TL;DR

**BUDZ is burning cash at an alarming rate with no revenue in sight; this stock is a speculative gamble, not an investment.**

AI Summary

WEED, INC. (BUDZ) reported a net loss of $622,018 for the nine months ended September 30, 2025, a significant increase from the $377,492 net loss for the same period in 2024, representing a 64.8% deterioration. The company generated no revenue for both periods, indicating a continued pre-revenue operational phase. Total operating expenses rose to $600,805 for the nine months ended September 30, 2025, up from $402,530 in 2024, primarily driven by a substantial increase in general and administrative expenses from $286,694 to $505,836. Cash balances plummeted from $159,355 at December 31, 2024, to just $400 by September 30, 2025, a 99.7% decrease. Total assets decreased from $738,366 to $532,267, while total liabilities increased from $959,372 to $1,051,346, leading to a worsening stockholders' deficit of $(519,079) from $(221,006). The company continues to rely on related-party notes payable, which decreased from $423,328 to $348,018, but accrued officer compensation increased from $202,750 to $324,750.

Why It Matters

WEED, INC.'s continued inability to generate revenue, coupled with rapidly escalating losses and a near-depleted cash reserve, signals severe operational distress for investors. The significant increase in accrued officer compensation to $324,750, despite zero revenue and mounting losses, raises red flags about management's priorities and corporate governance. This financial instability makes BUDZ highly unattractive to new investors and poses substantial risk to existing shareholders, as the company struggles to transition from a 'seed-to-sale' concept to a revenue-generating entity in the competitive cannabis market. Without a clear path to profitability or significant capital injection, the company's long-term viability is questionable.

Risk Assessment

Risk Level: high — The company's cash balance has fallen to a mere $400 as of September 30, 2025, down from $159,355 at December 31, 2024, representing a 99.7% decline. This, combined with a net loss of $622,018 for the nine months ended September 30, 2025, and zero revenue, indicates severe liquidity issues and an unsustainable operational model.

Analyst Insight

Investors should avoid BUDZ given its critical cash shortage, persistent losses, and lack of revenue. Existing shareholders should consider divesting, as the company's financial health suggests a high probability of further dilution or potential bankruptcy without a significant, immediate capital infusion.

Financial Highlights

debt To Equity
N/A
revenue
$0
operating Margin
N/A
total Assets
$532,267
total Debt
$1,051,346
net Income
$(622,018)
eps
$(0.005)
gross Margin
N/A
cash Position
$400
revenue Growth
N/A

Revenue Breakdown

SegmentRevenueGrowth
Total Revenue$0N/A

Key Numbers

Key Players & Entities

FAQ

What is WEED, INC.'s current cash position as of September 30, 2025?

WEED, INC.'s cash position as of September 30, 2025, is critically low at $400, a dramatic decrease from $159,355 at December 31, 2024.

Did WEED, INC. generate any revenue in the latest reporting period?

No, WEED, INC. reported zero revenue for both the three and nine months ended September 30, 2025, and the comparable periods in 2024.

How much was WEED, INC.'s net loss for the nine months ended September 30, 2025?

WEED, INC. incurred a net loss of $622,018 for the nine months ended September 30, 2025, which is a significant increase from the $377,492 net loss reported for the same period in 2024.

What is the trend in WEED, INC.'s operating expenses?

WEED, INC.'s total operating expenses increased to $600,805 for the nine months ended September 30, 2025, up from $402,530 in the prior year, primarily due to higher general and administrative costs.

What is the significance of the increased accrued officer compensation for WEED, INC.?

The accrued officer compensation for WEED, INC. increased to $324,750 as of September 30, 2025, from $202,750 at December 31, 2024. This rise, amidst zero revenue and mounting losses, raises concerns about executive compensation practices and the company's financial priorities.

What is WEED, INC.'s current stockholders' equity (deficit)?

WEED, INC. reported a worsening stockholders' deficit of $(519,079) as of September 30, 2025, compared to $(221,006) at December 31, 2024, indicating a negative net worth.

What are the primary risks highlighted by WEED, INC.'s 10-Q/A filing?

The primary risks include severe liquidity issues with only $400 in cash, persistent and increasing net losses, zero revenue generation, and a growing stockholders' deficit, all pointing to significant going concern doubts.

How many shares of common stock does WEED, INC. have outstanding?

As of August 13, 2025, WEED, INC. had 135,932,685 shares of common stock outstanding, an increase from 125,432,685 shares at December 31, 2024.

What is the purpose of this 10-Q/A amendment for WEED, INC.?

This Amendment No. 1 on Form 10-Q/A is being filed solely to post the iXBRL files, with no other changes made to the original Form 10-Q.

What is WEED, INC.'s business strategy?

WEED, INC.'s strategy is to become a 'Seed-to-Sale' company by purchasing land, building Commercial Grade 'Cultivation Centers,' and consulting, assisting, managing, and leasing to Licensed Dispensary owners and organic grow operators, with a focus on the legal and medical marijuana sector.

Risk Factors

Industry Context

WEED, INC. operates within the emerging legal and medical marijuana sector, focusing on infrastructure, financial solutions, and real estate. This industry is characterized by rapid growth potential but also significant regulatory uncertainty and evolving market dynamics. Companies in this space often face challenges related to capital access, compliance, and competition from both established players and new entrants.

Regulatory Implications

The company's operations in the cannabis sector are subject to a complex and fragmented regulatory environment. Changes in federal, state, and local laws regarding cannabis could materially impact the company's business model, profitability, and ability to operate. Compliance with these evolving regulations is a critical ongoing challenge.

What Investors Should Do

  1. Monitor revenue generation closely.
  2. Assess the sustainability of operations given the cash burn.
  3. Evaluate the impact of increasing operating expenses, particularly G&A.
  4. Understand the terms and implications of related-party transactions.
  5. Consider the potential for shareholder dilution.

Key Dates

Glossary

Stockholders' Equity (Deficit)
The net worth of a company, calculated as total assets minus total liabilities. A deficit means liabilities exceed assets. (WEED, INC. has a significant and growing stockholders' deficit of $(519,079), indicating negative net worth.)
Accrued Officer Compensation
Compensation earned by officers but not yet paid. It represents a liability for the company. (This account has increased substantially to $324,750, highlighting increased compensation obligations to company officers.)
Related Parties
Entities or individuals that have the ability to control or significantly influence the financial decisions of another entity. (The company has notes payable to related parties, indicating financial dependence on insiders or affiliated entities.)
Pre-revenue
A stage of a company's lifecycle where it has not yet generated any sales revenue. (WEED, INC. is in a pre-revenue stage, with no sales generated, making its financial viability dependent on future revenue streams.)
Dilution
The reduction in the ownership percentage of a shareholder when a company issues new shares. (An increase in outstanding shares suggests potential dilution for existing shareholders, reducing their proportional ownership.)

Year-Over-Year Comparison

WEED, INC. has experienced a significant deterioration in its financial condition compared to the prior year. Revenue remains at $0, but the net loss has widened by 64.8% to $(622,018) for the nine months ended September 30, 2025. Operating expenses have surged, driven by a substantial increase in general and administrative costs. Most critically, the company's cash position has collapsed by 99.7% to just $400, while total liabilities have increased, leading to a more severe stockholders' deficit. New risks related to potential shareholder dilution have also emerged due to an increase in outstanding shares.

Filing Stats: 4,589 words · 18 min read · ~15 pages · Grade level 15.6 · Accepted 2025-12-29 15:23:03

Key Financial Figures

Filing Documents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 3 ITEM 1 Consolidated Financial Statements 3 ITEM 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 ITEM 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 27 ITEM 4

Controls and Procedures

Controls and Procedures 27

- OTHER INFORMATION

PART II - OTHER INFORMATION 28 ITEM 1

Legal Proceedings

Legal Proceedings 28 ITEM 1A

Risk Factors

Risk Factors 28 ITEM 2 Unregistered Sales of Equity Securities and Use of Proceeds 28 ITEM 3 Defaults Upon Senior Securities 28 ITEM 4 Mine Safety Disclosures 28 ITEM 5 Other Information 28 ITEM 6 Exhibits 29 2 Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION This Quarterly Report includes forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements are based on management's beliefs and assumptions, and on information currently available to management. Forward-looking statements include the information concerning our possible or assumed future results of operations set forth under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations." Forward-looking statements also include statements in which words such as "expect," "anticipate," "intend," "plan," "believe," "estimate," "consider," or similar expressions are used. Forward-looking statements are not guarantees of future performance. They involve risks, uncertainties, and assumptions. Our future results and shareholder values may differ materially from those expressed in these forward-looking statements. Readers are cautioned not to put undue reliance on any forward-looking statements.

Consolidated Financial Statements

ITEM 1 Consolidated Financial Statements The consolidated balance sheets as of September 30, 2025, (unaudited) and December 31, 2024, the consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2025 and 2024, the consolidated statement of changes in stockholders' equity (deficit) for the three and nine months ended September 30, 2025 and 2024, and the consolidated statements of cash flows for the three and nine months ending September 30, 2025 and 2024, follow. The unaudited interim financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. All such adjustments are of a normal and recurring nature. 3 Table of Contents WEED, INC. AND SUBSIDIARY CONSOLIDATED FINANCIAL STATEMENTS September 30, 2025 TABLE OF CONTENTS Page No. CONSOLIDATED FINANCIAL STATEMENTS Unaudited Consolidated Balance Sheets 5 Unaudited Consolidated Statements of Operations and Comprehensive Loss 6 Unaudited Consolidated Statements of Changes in Stockholders' Equity (Deficit) 7 Unaudited Consolidated Statements of Cash Flows 8 4 Table of Contents WEED, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (Unaudited) September 30, December 31, 2025 2024 ASSETS CURRENT ASSETS: Cash $ 400 $ 159,355 Prepaid expenses 6,000 26,480 Other current asset 4,533 4,056 TOTAL CURRENT ASSETS 10,933 189,891 Land 258,319 258,319 Building 218,681 218,681 Computers & Equipment 147,771 147,771 Property and equipment, gross 624,771 624,771 Less: Accumulated depreciation ( 143,332 ) ( 128,417 ) Property and equipment, net 481,439 496,354 Grower License 667 667 Trademark 50,000 50,000 Intangible assets, gross 50,667 50,667 Less: Accumulated amortization ( 19,034 ) ( 17,084 ) Intangible assets, net 31,633 33,583 ROU asset 8,262 18,538 TOTA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2025 (Unaudited) Note 1 – Nature of Business and Significant Accounting Policies Nature of Business WEED, Inc. (the "Company"), (formerly United Mines, Inc.) was incorporated under the laws of the State of Arizona on August 20, 1999 ("Inception Date") as Plae, Inc. to engage in the exploration of gold and silver mining properties. On November 26, 2014, the Company was renamed from United Mines, Inc. to WEED, Inc. and was repurposed to pursue a business involving the purchase of land, and building Commercial Grade "Cultivation Centers" to consult, assist, manage & lease to Licensed Dispensary owners and organic grow operators on a contract basis, with a concentration on the legal and medical marijuana sector. The Company's plan is to become a True "Seed-to-Sale" company providing infrastructure, financial solutions and real estate options in this new emerging market. The Company, under United Mines, was formerly in the process of acquiring mineral properties or claims located in the State of Arizona, USA. The name was previously changed on February 18, 2005 to King Mines, Inc. and then subsequently changed to United Mines, Inc. on March 30, 2005. The Company trades on the OTC Pink Sheets under the stock symbol: BUDZ. On April 20, 2017, the Company acquired Sangre AT, LLC, a Wyoming company doing business as Sangre AgroTech. ("Sangre"). Sangre is a plant genomic research and breeding company comprised of top-echelon scientists with extensive expertise in genomic sequencing, genetics-based breeding, plant tissue culture, and plant biochemistry, utilizing the most advanced sequencing and analytical technologies and proprietary bioinformatics data systems available. On May 2, 2022, the Company acquired Hempirical Genetics, LLC, a Arizona company. The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. These

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